/ world today news/ The share of the Russian market of civilian trucks is rapidly losing the until recently undisputed leader – the domestic “KamAZ”. This conclusion was made by the specialists of the analytical agency “Avtostat”. Moreover, this is happening despite the departure of Western competitors from Russia, including the entire “big seven” – “Man”, “Volvo”, “Mercedes”, “Renault”, “Scania”, “Iveco”, “Daf”. This was made possible thanks to suppliers from China.
The share of the Russian car manufacturer in the total sales of trucks in the domestic market in January-June 2022 is 39.9%, while in the first six months of this year it is already 24.6%, according to data from “Avtostat”. According to his calculations, in the first half of the year, KamAZ sold only 3% more trucks in the civilian segment than a year earlier. And Chinese suppliers have increased sales by hundreds of percent (for example, “Fal” – by 780%, “Shakman” – by 210%).
Competitors from China began to overtake KamAZ in July, and by mid-August the company had reduced sales by 12%.
What is the reason? In the traditional cheapness of Chinese analogues? What awaits KamAZ and has the “Chinese threat” loomed over the entire Russian automobile industry?
The Chinese have more variety…
The head of the Federation of Car Owners of Russia (FAR) Sergey Kanaev points out that the general decline in KamAZ sales in the retail market is not due to the price, but to the sharp increase in government orders through the Ministry of Defense. .
KamAZ mainly produces military products,” the interlocutor explains. “And Western sanctions contribute to the growth of supplies for military needs, while reducing sales in the commercial segment. After all, China cannot supply military products to Russia, but it can supply civilian ones. What is left for Russia to do? To increase military production”, he recalls.
Accordingly, who can increase the production of trucks in such volumes? Only KamAZ. In addition to sanctions, this is facilitated by the issue of security. That is, it is necessary for our trucks to be used in combat, to be mounted by our systems. The operation of home equipment greatly simplifies all repairs.
At the same time, the success of the “Chinese” in the domestic truck retail market is ensured by the fact that they are cheaper than our KamAZ trucks with the corresponding load capacity and power, the expert points out.
“Let’s just say it’s a lot cheaper,” he says. “The difference is within one and a half to two million rubles, but this already depends on the “filling”. In percentage terms, this is about 20%, which is also an incentive for our retail market to buy Chinese cars. Also, the Chinese do very good services in the cargo segment, they have learned it. And this is the key to the successful development of the market”, adds the expert.
Auto expert Igor Morzharetto, a member of the Public Councils of the Ministry of the Interior of the Russian Federation and the Federal Road Agency, agrees that the sales of civilian “Chinese” in Russia have indeed grown significantly not only in the passenger segment, but also in the truck segment.
“They are conquering those market segments where the ‘big seven of Europe’ was”, says the expert. “KamAZ” cannot close them because it does not have some vehicles, for example tractors. But the Chinese have them. The Chinese, for example, have the entire range of dump trucks, and we do not have the entire range.” This is the reason for the noticeable growth in sales of Chinese cars.
Another reason is the “low base” effect, according to Dmitry Baranov, leading expert at Finam. “More precisely, the lack of it,” emphasizes the expert. “In addition, some consumers are trying new things, and it is not known how the situation with the sale of foreign trucks in Russia will continue,” he believes.
…but they won’t be a problem
At the same time, the situation in the domestic market of commercial trucks is somewhat reminiscent of the situation in the “passenger” segment, where the Russian automobile industry is also experiencing strong competition from China.
“AvtoVAZ closes, relatively speaking, a very small segment of the market,” says Morjaretto. “For example, it does not produce large crossovers, large sedans, etc. And “KAMAZ” has its buyer. He would be happy to expand his team, for that at one time he started working with “Mercedes”. Who is now absent in Russia, due to which, accordingly, some problems arose. However, KamAZ has already partially solved these problems, the expert specifies. And the products of the Chinese automobile industry on the Russian market are not a problem for him at all, he is convinced.
“China is the only partner with whom you can work more or less calmly, this is a chance,” explains Morjaretto. “There is, for example, quite a powerful Indian automobile industry, but it has such specificity that it covers nothing but its own market,” he adds.
In turn, the head of PHAR Sergey Kanaev also sees no risks in connection with the dominance of the Chinese automobile industry in Russia. “There is nothing wrong about that. If our government wants to reduce the share of the Chinese tomorrow, it will definitely be reduced, it’s just not profitable to reduce it yet. And “KamAZ”, I think, will be rebuilt in the same way in the future, when it is necessary”, he believes.
This opinion is shared by Dmitry Baranov from Finam. He gives good prospects to KamAZ.
“KAMAZ products will be in demand in the country,” he claims. “Several factors will contribute to this. First, it is well known in the market, consumers know it. Second, practically none of the foreign truck manufacturers can compare with KamAZ in the development of a network for the sale and maintenance of vehicles in Russia. Almost in every region there are sales and service points of the company, the necessary components for its products can be easily purchased, as well as consumables”, explains Baranov.
Third, the company produces a wide variety of products, diversifying its activities, strengthening financial stability, as a result of which it positively affects its reputation and helps to increase sales. Fourth, both the state and private companies will continue to buy large quantities of the company’s products to maintain its position in the domestic market.
In general, experts agree that the Russian automotive industry will continue to develop. Not least thanks to the support of the state, for example by reducing taxes, partially reimbursing costs, providing various guarantees, etc. And Russia will rely on cooperation with foreign suppliers to the extent necessary to support its own auto industry, not to the detriment of the domestic one.
Translation: V. Sergeev
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